THE controversial Cloud was axed after engineers realised the landmark project would cost #100m more than first thought.

The project, dogged by problems from the start, became just too expensive, said Liverpool council chief executive Sir David Henshaw, as he revealed how the #228m original costing was added to as the practicalities were examined.

But he denied the public sector partnership of the council, Liverpool Vision, the Northwest Development Agency and Liverpool Museums, were seduced by the grandeur of the scheme.

Sir David said: "Projects are born of an idea and then you have to build them up to a practical way of doing it.

"The key was the commercial viability of it, and to make this scheme work we would have to double the number of apartments and, frankly, that was too much."

Sir David revealed Will Alsop's revolutionary Cloud design, which looked so good on paper, hit trouble when engineers examined the details.

Their costs rose and to meet them planners earmarked up to 700 apartments.

Sir David said: "The initial scheme was a very broad brush stroke. Engineers and architects coming in found additional costs."

So far #2m of public money has already been pumped into the scheme, altough Sir David stressed a large part of the money would have been spent anyway for structural surveys and plans to provide for any building on the site.

Despite the Cloud being axed, the man behind the revolutionary Fourth Grace design insisted the project was viable.

Architect Will Alsop, who was not invited to the yesterday's crisis meeting, said: "We havea viable scheme and I don't know why they have done this.

"I hope to speak to David Henshaw and a number of other people. I can't comment on whether the scheme will be revived, but we are ready to roll."

Mr Alsop, who has worked with a team of 12 on the project for nearly 18 months, said: "I believe 150% in this project.

"I find it difficult to understand why anyone would say that it is not viable. When we were one of four in the final stages of the Fourth Grace competition we said we would need a substantial amount of money from the public sector.

"We told them if they weren't prepared to do that then they should choose another one of our competitors. Ninety per cent of the City's Culture bid was down to the Fourth Grace, because what else have you got?"

No one from Cloud developers Neptune was available to comment on the decision.

A project to build a Fourth Grace first appeared on the horizon when the land was sold to the council in 2001.

Although it was a central plank of Liverpool's year-long bid for Capital of Culture status which was granted in May 2003 it was controversial from the off, coming last of four projected designs in public consultation.

And as recently as May, Will Alsop was forced into a redesign of the scheme.

Today Sir Bob Scott, who led Liverpool's successful Capital of Culture campaign, called for a new "iconic" building on the site.

Sir Bob said: "My reaction is one of disappointment, because I thought it was a very exciting building and hoped it would be ready by 2008.

"Having said that, there is a great opportunity and requirement still to build a really important building and an iconic building.

"None of us wants Liverpool to be a building site by 2008, but I am looking on the bright side."